Affordable life insurance protection for UK mums

Life for mums is full of uncertainty; however, you can ensure your family’s financial security, whatever the future may hold, with life insurance.

The thought of leaving your children without a mother is truly unbearable.

Whilst the emotional void of losing a mum can never be filled, it’s at least possible to lessen the financial burden.

As a mum, putting in place adequate life insurance means even after you’re gone, you can protect all the important milestones in your children’s lives.

At Reassured we’ve helped over 814,000 families secure affordable life insurance.

(And the best bit, our award-winning FCA regulated quote service is FREE to use)…

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Policy types for mums

The right life insurance policy for you will depend on what it is you wish to protect for your children.

There are a number of different options available. Those most common among mums include:

Both decreasing and level term life insurance provide a lump sum pay out if you pass away during the set term.

But whilst the value of a level term policy remains fixed, the pay out sum of a decreasing term policy reduces over time.

For this reason, decreasing term cover is ideal for covering a repayment mortgage.

Level term is well suited to cover an interest-only mortgage, or a repayment mortgage as well as meeting future living costs or providing an inheritance.

Instead of providing a one-off payment, family income benefit provides an ongoing tax-free income for a predetermined amount.

FIB payments can cover day-to-day living costs and help avoid having to make difficult investment decisions.

If you're looking to provide more than one level of cover for your family, it's possible to take out multiple life insurance policies.

How much life insurance do mums need?

The level of cover you require depends on what it is you need to protect, your outstanding debt and family’s lifestyle.

Once you've determined which policy best meets your needs, you'll then need to determine how much cover you need.

In some instances, this will be obvious.

For example, if taking out a decreasing term policy to cover your mortgage, you would take out a level of cover that mirrored your mortgage.

However, if looking to cover family living costs, you would need to take into account all your outgoings as well as any new expenses which may occur as a result of your passing.

Existing costs could include:

  • Monthly mortgage repayments or rental payments
  • Day-to-day family living expenses (food/drink, clothing, leisure activities, school)
  • Household bills (gas, electricity, water, council tax, broadband, TV)


New costs as a result of your death could include:

  • Funeral and associated costs (£9,493 total cost of dying[1])
  • Loss of household income due to reduced working hours
  • Additional childcare fees (£222.36 per week for full-time childcare[2])

When determining the amount of life insurance you need, you should also take into account the effects of inflation on the pay out.

Particularly if your children are very young.

What may suffice as enough to continue their lifestyle today may not be sufficient in the future as living costs rise.

How much life insurance do you need?

Enter your financial commitments to understand the level of cover you require.

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£121,687 is the estimated average outstanding mortgage per household in the UK.

Our property is generally the largest financial commitment any of us will make.

Your life insurance should cover this significant debt should you no longer be around.
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According to Money Advice Service, full-time childcare in the UK now costs £242 a week.

The loss of a parent could result in the need for additional childcare whilst the surviving parent increases their hours to account for lost income.

Your life insurance cover should factor in this additional required outgoing.
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The average level of debt (minus a mortgage) in the UK is £15,385.

Factoring in any outstanding debts in your name when arranging life insurance ensures this burden is not passed to loved ones.
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You may wish to leave your loved ones an inheritance or lump sum gift upon your passing.

Factoring in the gift amount when arranging your cover will ensure the pay out amount will be sufficient to provide your loved ones with this selfless gesture.
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According to SunLife, the average cost of a UK funeral is now £4,417, whilst the total cost of dying is £9,493.

This is a 130% increase over the past 16 years and shows no signs of slowing down.

A significant cost which should be factored into the amount of life insurance you secure.
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If you are one of the 65% of the UK who are lucky enough to have savings, this could be used as protection if you were to pass away.

Any pay outs from existing life insurance policies and investments can also be used as financial protection for your loved ones if you were no longer around.

Factor this into your required cover amount.
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Your total cover estimate

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How long do you need life insurance cover?

As a mum, the length of your policy is usually determined by two key factors:

  1. The age of your children
  2. The length of your mortgage term

If taking out decreasing term cover, you would normally choose a policy term to mirror that of your mortgage.

This would ensure that if you were to die before your mortgage was cleared, your family could remain in their home without worrying about money.

Alternatively, you may choose to use the age of your youngest child to determine the length of your policy.

When looking to secure the financial stability of your kids, your policy could align with the length of time until they’re financially independent.

It’s also important to consider whether your children are likely to attend university, therefore increasing the age at which they’ll reach independence.

Life insurance for single mums

As a single mum, it’s possible that you’re the sole breadwinner and the only financial support your children receive.

For this reason, without life insurance, your passing could leave your children in serious financial difficulty, potentially having to move and endure major lifestyle changes.

Life cover can help prevent this upheaval by clearing your mortgage, providing an income for living costs or a lump sum inheritance.

Despite this, only 42% of single parents have life insurance[3]. But why?

Getting by on a single salary can be very challenging. What’s more, only 38% of single parents receive maintenance payments[4].

As a result, many single mums don’t think they have the disposable income to afford such luxuries as life insurance.

But life insurance doesn’t have to be expensive. We can secure life insurance for mums on benefits.

Using an FCA registered broker, like Reassured, to compare quotes means you can find the most suitable policy within your budget.

Life insurance for young mums

Having a child is often the first major life event that makes you seriously consider your mortality, particularly for young mums.

But did you know, the younger you are, the cheaper your monthly premiums, (due to the reduced risk you pose to an insurer)?

As a result, it’s best to take out life insurance as early as possible so you can lock in very low premiums.

Did you know a 25-year-old can secure comprehensive life insurance for as little as £6 per month?

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Life insurance for working mums

As a working mum, your passing would not only mean the devastating loss of a parent, but also a major financial loss to your family.

Your income would be lost, potentially leaving your family unable to pay the mortgage/rent and other living costs.

Securing life insurance can leave your family with a cash lump sum to minimise any financial disruption.

When arranging life insurance, you should consider the income you contribute as well as what’s needed to cover your family’s lifestyle.

It’s also important to consider any increase in income you may experience over the term as well as any increase in living costs.

Life insurance for stay-at-home mums

We believe it’s equally important for stay-at-home parents to have life insurance protection.

It’s a common misconception that stay-at-home mums (or dads) don't require cover as they don't earn a tangible salary.

However, as a stay-at-home mum, if you were to pass away, your family would suffer massively, both practically and financially.

It’s likely that your partner would have to reduce their working hours or alternatively pay expensive childcare fees.

According to research, the true value of a stay-at-home mum is estimated to be £80,000 a year, highlighting the importance of life insurance[5].

Who would take on all the other roles you fulfil and what would the cost implications be?

Joint life insurance

Taking out joint life insurance is a cost-effective option which covers both you and your partner simultaneously.

They’re usually 25% - 30% cheaper compared with paying for two separate policies.

However, joint policies only pay out once, usually upon the first death, before expiring.

This could leave your surviving partner unprotected whilst older, thus incurring higher premiums.

The following table displays the average cost of x2 single life insurance policies, in comparison to x1 joint policy for a sum insured of £100,000 - £200,000 (without critical illness cover)[6].

Age x2 Single policies x1 Joint policy
30 £11.78 £11
35 £18.08 £14.39
40 £26.70 £22.29
45 £42.42 £34.14
50 £67.78 £53.96


At Reassured, we can compare quotes for both single and joint life insurance policies on your behalf.

Life insurance for mums-to-be

There are many things to consider when you’re pregnant and the future of your child is the top priority.

Welcoming a child into the world makes you acutely aware of the dangers which exist both for you and them.

Whilst it’s not pleasant to consider, your passing could lead to financial instability if the right provisions aren’t in place.

Taking out life insurance during your pregnancy ticks off another task before the big day arrives.

Generally, taking out a policy whilst pregnant is no different from obtaining life insurance as a parent.

Occasionally, an insurer may ask to postpone your cover if there have been complications during the pregnancy.

However, as long as your pregnancy is progressing well, cover can start immediately.

Whilst pregnant, the insurer will take into account your pre-pregnancy weight as opposed to your current weight.

In the instance of a planned C section, your application will be postponed until after your operation.

Mums who smoke

If you smoke your life insurance premiums will be more expensive.

This is because of the associated health risks, which means statistically a claim is more likely.

Insurers mitigate this increased risk by loading premiums.

Therefore, if you're a mum who smokes it's even more important that you compare quotes.

This is because different insurers employ different underwriting processes and therefore costs vary.

However, rest assured that undergoing this process means it’s possible to obtain affordable cover.

At Reassured, we have arranged life insurance for over 100,000 UK smokers.

The table below shows the difference between the average cost of life insurance for a smoker vs a non-smoker over a 20-year level term for £100,000 cover[7].

Age Smokers per month Non-smokers per month
30 £7.21 £5.08
35 £11.20 £6.85
40 £16.77 £9.39
45 £26.78 £13.58
50 £43.03 £20.87

Life insurance for mums with free gift

Many insurers offer a free welcome gift if you take out a policy directly through them.

Whilst most mums would welcome a £50 Amazon voucher, it shouldn’t be the most important consideration when choosing life cover.

The most important thing is to secure the right policy, with the appropriate level of cover, at the best price.

The value of a gift card over the course of an entire term is usually insignificant.

Compare the Best Quotes for Mums »

Having more children

There are a number of instances where your life insurance can be changed without the need for additional underwriting.

A special events option encompasses circumstances such as having more children or buying a bigger house.

The sum assured can be increased to account for the greater level of protection required.

This increase will, however, be reflected in the cost of your monthly premiums.

A special events option isn't available with all insurers and the terms and conditions may vary between different policies.

If you want to have more children, remember to consider your policy and whether you have enough cover in place to meet your changing circumstances.

On occasions, it can be more cost-effective to cancel an existing policy and take out a new one, (although this will depend on your age).

Again, we can help you achieve this by comparing quotes from different insurers.

Life insurance for women

Due to EU gender neutral ruling, women no longer pay less for life insurance.

It’s a relatively well-known that the life expectancy of women in the UK is higher than that of men[8].

As a result, traditionally women would pay lower premiums than men for the same level of cover.

However, on 21st December 2012, the EU gender ruling was put in place to stop men and women paying different premiums, based on gender[9].

Despite the UK leaving the EU, the gender-neutral ruling is expected to remain in place.

Writing your life insurance in trust

If you’re a mum, writing your life insurance in trust could be a very good idea and really benefit your dependants.

The key benefits of writing your life insurance in trust:

  • Avoid or minimise 40% inheritance tax, (over the £325,000 threshold)
  • Avoid the lengthy probate process, (for a faster pay out)
  • More control over who gets the money and when, (for example you may only want your children to receive the benefit after they turn 18)

At Reassured, we offer a free trust writing advice service to help with the lengthy application process.

We’re also on hand to answer any questions you may have.

Terminal illness cover

The majority of life insurance policies now contain terminal illness cover as standard.

At Reassured, all of the policies we arrange come with terminal illness protection.

This means if you’re diagnosed with an illness covered by your policy and given less than 12 months, you’re eligible for an early pay out.

These funds could be used to fund medical treatment, carry out home adaptations or simply to enjoy with your loved ones.

Critical illness cover

Critical illness cover, in contrast, is often sold as a standalone product, (although can be included as part of your life insurance).

Again, it pays out if you’re diagnosed with an illness covered by the policy, although it doesn’t have to be terminal.

This includes cancer, heart attacks and stroke. (If you make a full recovery, you're not required to repay the funds).

Critical illness cover is particularly helpful if your condition isn’t terminal but stops you from being able to work.

At Reassured, we can arrange critical illness cover too. We even have our own critical illness product, Big3, which doesn’t require any additional underwriting.

Overweight mums

If you're overweight your life insurance premiums are likely to be higher.

This is due to an increased risk of health complications, such as cancer and type 2 diabetes.

If your BMI is 39 or under, although you’ll pay more, your application will be accepted.

However, if your BMI is 45 or above you’ll likely to be declined cover altogether.

Free life insurance for mums

Nowadays many insurers are offering free life insurance for mums during the first year of their child’s life.

Whilst on the surface this may seem like a good deal, the sum assured rarely exceeds £10,000.

It’s highly unlikely this cover amount would be sufficient in the event of your passing.

To put this into perspective, the average cost a funeral is currently £4,417, leaving very little to support your family with other outgoings such as the mortgage and living costs[1].

As a result, it’s generally best to arrange standard life insurance for the true amount required to support your family.

Best life insurance for mums, (compare quotes to save money)

Hopefully, this post has helped you establish which life insurance best meets your unique needs.

One important message to convey is that the cost of premiums can vary significantly between insurers.

However, by comparing quotes you can find the right cover, at the most affordable price.

Using an FCA regulated life insurance broker, such as Reassured, allows the hard work to be done for you.

We’ll obtain quotes from our panel of insurers, supplying you with the information needed to make an informed decision.

What's more, you can compare quotes completely free of charge by using our award-winning service.

Life Insurance Quotes for Mums »

Sources:

[1] SunLife (2020), Cost of Dying Report, sunlife.co.uk/costofdying2020

[2] https://www.moneyadviceservice.org.uk/en/articles/childcare-costs

[3] https://www.beaglestreet.com/help/guides/single-parents/

[4] https://www.thisismoney.co.uk/money/news/article-3387027/One-four-UK-breadwinners-not-life-insurance-buy-life-cover.html

[5] https://www.bidvine.com/blog/mum-salary/

[6] https://www.moneysupermarket.com/life-insurance/single-vs-joint/

[7] https://moneytothemasses.com/quick-savings/insurance-2/life-insurance/much-100000-life-insurance-cost

[8] https://www.bbc.com/future/story/20151001-why-women-live-longer-than-men

[9] https://www.abi.org.uk/globalassets/sitecore/files/documents/publications/public/migrated/gender/abi-comment-on-eu-gender-directive.pdf

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